How much will DSM residents be refunded?

Monday court hearing to address franchise fee refunds

Residents could learn as early as Monday how much they are owed after a nine year court battle that is now nearly completed.

For nine years Des Moines residents have been waiting for the outcome of a class action lawsuit which accused the city of collecting an illegal utility franchise fee.

The class won a $40 million judgement and refunds to utility customers are now close to being decided.

Three attorneys who have fought the city for nearly a decade want to be paid nearly $15 million.

Court documents show Bruce Stoltze, Brad Schroeder and Steve Brick are asking a Polk County judge to award them about 37 percent of the judgement.

In court documents, city attorneys said the the request was "shocking and excessive."

The class attorneys said the request is not unusual and notes the city of Des Moines is to blame for the entire mess.

"(They) seem to have amnesia," Shroeder said. "The legal fees and the refunds (to residents) in this case would be zero dollars if the city had simply stopped collecting the illegal tax back in 2004."

A hearing on the request is scheduled for Monday morning.

The courts have said the city owes Des Moines residents a refund of fees tacked onto utility bills. The lawsuit included a trial, two appeals to the Iowa Supreme Court, and a request for a hearing before the U.S. Supreme Court, which was denied.

City officials are now seeking a means to tax residents to pay for the refunds and attorney fees.

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